Franklin Templeton flags uncertain outlook for crypto treasury firms, citing ‘dangerous’ feedback loop risk
3 Articles
3 Articles
Key points of Franklin Templeton's News Analysts warn that the crypto treasury corporate model, although promising, faces a possible negative spiral if market conditions change. More than 135 listed companies adopted Bitcoin-centric strategies, driven by premium issues and asset stacking opportunities Proof-of-Stake. Despite the potential for appreciation and value growth for shareholders, maintaining the NAV premium is key to avoiding dilution …
Crypto-Fueled Corporate Treasuries Raise Growth Potential — and Collapse Risks
More than 130 publicly traded companies now hold Bitcoin alone, with others adding Ethereum and Solana. The playbook, popularized by Strategy (formerly MicroStrategy), involves raising capital through various instruments — from equity and convertibles to preferred shares — and using those funds to buy crypto directly. The strategy works well in bull markets. Firms often issue stock above their net asset value (NAV), unlocking more capital and pu…
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